Coffee Prices Rebound After Recent Dip

The recent surge in coffee prices marks a significant shift from last month's downturn, when prices hit a five-month low of VND90,000. Industry experts attribute this rebound to a combination of factors, including unmet supply expectations and a seasonal increase in demand from major markets as the year draws to a close.

Global Supply Concerns

Supply from Brazil, the world's largest coffee producer, has been slower than anticipated, raising concerns over potential shortages. Brazilian farmers are reportedly holding back stocks in anticipation of higher prices as their harvest season nears its end.

Photo: Coffee in Central Highlands province of Gia Lai, December 2020. Photo by VnExpress/Duc Hoa

Impact of Tariffs and Trade Policies

The 50% tariff imposed by the Donald Trump administration on Brazilian goods has further complicated the situation, slowing trade between the two countries and forcing exporters to look for alternative sources.

Production Updates from Key Regions

In Colombia, wet-processed Arabica production in July reached 1.37 million 60-kg bags, a 19% increase year-on-year and the highest in a decade. However, prolonged heavy rains earlier this year delayed the harvest to the second half of the year.

Market Reactions

On the London exchange, Robusta futures for September delivery rose 4.2% to $3,561 per ton, while November contracts increased nearly 4% to $3,510 per ton. Similarly, in New York, Arabica futures for September climbed 3.9% to around $6,816 per ton, with December contracts showing similar gains, reflecting a global upward trend in coffee prices.